The impact of a poor understanding of the role of interest rates in coordinating the economy through time and of the capital structure of production:
The importance of manufacturing to the economy declined more rapidly under Labour administrations since 1997 than it did during the Margaret Thatcher era, according to a Financial Times study.
The big winners in the same period were bankers, estate agents and public sector workers, whose sectors’ share of output increased under the Labour governments of Tony Blair, the former prime minister, and Gordon Brown, his successor. The findings about the state of the economy were uncovered during a study of data held by the Office for National Statistics.
Manufacturing accounted for more than 20 per cent of the economy in 1997, when Labour came to power critical of the country having too narrow an industrial base. But by 2007, that share had declined to 12.4 per cent.